A Homeowner Loan Or A Remortgage Can Be Very Cost Effective.

Secured homeowner loans and remortgages have much in common and both are home loans.

Home loans are, as the name suggests, connected to houses in some shape or form, and in this case the home is an owner occupied property, meaning that these loans only apply to those who have purchased the home in which they reside and have not rented it either from a private individual or a local council.

The first thing to talk about before reaching the subject of remortgages is in fact mortgages.

This is the case whether it is a first time buyer wanting to buy his first property or to a home mover, that is a person who is already a homeowner, and who wishes to move to another property.

Mortgages usually have a specific period in which the mortgage deal originally taked out remains in place.

Two years is the most common tie in period although one year is possible as is five years or more.

On a tracker mortgage the rate would be.The rate will remain at the same rate above base.The current base lending rate is half of one percent.05% the rate for the previous example would be 2.39% and if the rate is 1.34% above base the current rate would be 1.84%.

At the end of the two years or whatever the rate reverts to the Standard Variable Rate which is normally more expensive than the original mortgage and this is why after the tie in period most homeowners consider arranging a remortgage as they should be able to obtain a better rate of interest.

Therefore a remortgage is the changing of a mortgage from one provider to another often with the sole intention of obtaining a lower rate of interest, and as rates vary tremendously from one lender to another a homeonwer can expect to get a better deal.

Remortgages are however not always taken out simply as a means to making a lesser payment each month but a a low interest rate way of raising funds for a variety of purposes in the same way as homeowner loans.

Homeowner loans which are also called secured loans, obviously due to the fact tht they are exclusively for homeowners and that they are secured on property.

Both remortgages and secured loans/ homeowner loans are secured on property and releasing some equity grants funds that can be used for almost any legitimate purpose.

A remortgag pays off the existing mortgageand becomes the new first charge, and a homeowner loan does not interfere in any way with the mortgage which remains as before.

Whatever a homeowner chooses thay are both cheap ways of raising funds when needed.


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Champion Finance has been arranging homeowner loans since 1985. They also arrange whole of the market mortgages and remortgages. Debt help and debt advice of all kinds is also available.